Medical & Professional Offices

We finance both owner-occupied and non-owner-occupied professional office buildings. The distinction matters more here than in most asset classes, because it determines which loan programs are open to you.

Property that qualifies

• Dental offices and practices
• Physician and surgeon offices
• Wellness clinics
• Other professional and clinical office space

If your practice will occupy the building

Owner-occupied professional property is one of the strongest financing situations in commercial real estate. SBA 504 and 7(a) programs are built for exactly this case and can finance with as little as 10% down on qualifying projects — a considerably better outcome than the 25% to 35% a conventional investment loan would require.

For a practice that has been paying rent for years, the arithmetic is often compelling: the same monthly outlay builds equity in an asset you own rather than one you do not, and the property can be held after you eventually sell the practice.

If you are buying it as an investment

Medical and professional tenants are attractive to lenders. Practices invest heavily in fitting out clinical space — plumbing, shielding, specialist power, equipment anchored to the building — and that investment makes them markedly less likely to move at the end of a lease than a general office tenant. Longer average tenancies and lower turnover cost translate into better financing terms.

The other side of that specialisation is re-tenanting risk. Purpose-built clinical space appeals to a narrower pool if the tenant does leave, and lenders will want to know how readily the improvements would suit a different practice.

What we will ask for

For an investment purchase: the rent roll, lease abstracts showing terms and renewal options, operating statements and the purchase contract. For an owner-occupied purchase: your practice's financials and tax returns, since the business is what repays the loan.